Resilient or Vulnerable? Evaluating the Moderating Role of Institutions in the Climate-Financing–Inclusive Development Nexus in Sub-Saharan Africa

This study employs a balanced panel dataset of 39 Sub-Saharan African (SSA) countries covering the period 2000–2022. The dataset integrates country-level indicators on inclusive development, climate finance, and institutional quality, alongside relevant macroeconomic and control variables. Dependent Variable: Inclusive Development Index (IDI), capturing multidimensional welfare beyond GDP, including equity, social inclusion, and sustainability indicators. Key Explanatory Variables: Climate-Related Finance (LNCRF): inflows of external climate finance (mitigation and adaptation combined). Mitigation-Related Finance (LNMRF): external finance dedicated to climate mitigation projects. Institutional Quality (INSTQI): composite index derived from governance indicators (rule of law, control of corruption, voice and accountability, government effectiveness, regulatory quality, and political stability). Interaction Terms (INSTQICRF, INSTQIMRF): constructed to capture the moderating role of institutional quality on the finance–development nexus. Control Variables: trade openness, foreign direct investment (FDI), population growth, and GDP growth. The dataset was compiled from multiple reputable sources including the World Bank’s World Development Indicators (WDI), OECD climate finance data, and the Worldwide Governance Indicators (WGI). All variables were harmonized to ensure comparability across countries and time. The resulting dataset is suitable for dynamic panel estimation techniques such as System GMM and Panel ARDL-ECM, allowing robust analysis of both short-run dynamics and long-run equilibrium relationships.